The Strength of Franchising

Franchising is the most popular system for growing a business in the United States today. According to every government survey, franchising has experienced explosive growth since the mid-70s and is expected to be the leading method of doing business in the new century.

In the United States, there are over 2,500 franchise systems. These systems have in excess of 534,000 franchise units, which represent 3.2% of the total businesses. This 3.2% of all businesses controls over 35% of all retail and service revenue in the U.S. economy.

Franchising's advantages over going into business for yourself include; opening quicker, experiencing success sooner, developing a customer base faster, having less risk and being more profitable.

Your success as a franchisee is based on the proven success of the franchisor to operate company units and upon the success of existing franchisees.

A company franchises because it wants to quickly and in great numbers replicate its successful company operations without significantly increasing its debt. Because it has been successful at teaching its own employees to operate the business, the company believes it can repeat the same success by teaching others to do it.

In franchising, the operating system becomes identified with the brand or trade name that you license as a franchisee. Each franchise system uses precise methods to service and satisfy the customer. By documenting these practices, the franchisor institutionalizes the buying experience. Because customers don't like surprises this consistency in operations, unit to unit, builds customer loyalty to the brand.

Franchising is successful because we Americans are people of habit and are brand-driven when we purchase goods and services. We trust brands that we see everywhere, every day. We tend to be loyal to a product or service delivered to us the same way all the time.

Published: October 26th, 2009

Share this Feature

Reader Reactions:

comments powered by Disqus
Golden Corral
ADVERTISE
SPONSORED CONTENT

Franchising Topics »

Hot Opportunities

FASTSIGNS Franchise Opportunity

FASTSIGNS
Signage has never been more important. Right now, businesses are looking...

Add
Tony Roma's Franchise Opportunity

Tony Roma's
After two decades of fast-paced international expansion, we are...

Add
Waxing The City Franchise Opportunity

Waxing The City
Franchise ownership with Waxing the City is a smooth move. From the...

Add
Pro-Lift Garage Franchise Opportunity

Pro-Lift Garage
Pro Lift Garage Doors franchises offer opportunities in the $300 billion...

Add
Launch Trampoline Park Franchise Opportunity

Launch Trampoline Park
Launch Trampoline Park is an indoor sports and entertainment facility...

Add
Papa Murphy's Take 'N' Bake Pizza Franchise Opportunity

Papa Murphy's Take 'N' Bake Pizza
The world's largest, fastest growing Take 'N' Bake pizza franchise is...

Add
Transworld Business Advisors Franchise Opportunity

Transworld Business Advisors
Transworld is partnered with the nation’s leading development team to...

Add
Aloha Poke Bowl & Hawaiian Grill Franchise Opportunity

Aloha Poke Bowl & Hawaiian Grill
We're not a stuffy, corporate franchise brand. Our brand culture...

Add

Multi-Unit Franchisee Magazine

The only publication dedicated exclusively to the hottest topic in franchising - Multi-Unit and Multi-Brand Franchisees.

Subscribe to Franchising.com Express

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)